Question
Which of the following statements is INCORRECT? 1. Risk premium is a reward for bearing risk. 2. The weighted average cost of capital should reflect
Which of the following statements is INCORRECT?
1. Risk premium is a reward for bearing risk.
2. The weighted average cost of capital should reflect the risk of the firm's assets.
3. Any incremental side effects of a new project should be included in the capital budgeting analysis.
4. Mid-west drought is not an example of systematic risk.
5. The stand-alone risk in capital budgeting reflects diversification benefits, if any.
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
